Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Required minimum distributions divide the account balance by a life-expectancy factor, so the amount grows as a share of the account each year. A $750,000 balance with a first-year factor of 26.5 requires about $28,302. Over ten years, with 5 percent growth after each distribution, the modeled total is about $355,978 and the balance ends near $760,663. Because the factor falls each year, the required share rises, and the taxable income rises with it.
Before you rely on it
What to check
Replace the modeled factors with the official table for your situation and update them every year. The rules and tables are set by law and can change.
The common error
Where people go wrong with multi-year RMD calculator
Planning as if the withdrawal stays the same each year. It grows with the factor, and the bigger income can push you into a higher bracket.
Sensitivity evidence
How starting prior year-end balance changes the first-year RMD
| Starting prior year-end balance | First-year RMD | Cumulative projected RMDs | Projected ending balance |
|---|---|---|---|
| $600,000 | $22,642 | $284,782 | $608,530 |
| $675,000 | $25,472 | $320,380 | $684,597 |
| $750,000worked example | $28,302 | $355,978 | $760,663 |
| $825,000 | $31,132 | $391,576 | $836,729 |
| $900,000 | $33,962 | $427,174 | $912,796 |
Every input, tested
Which input moves the first-year RMD most
| Input | Tested from | To | First-year RMD at each end | Swing |
|---|---|---|---|---|
| Starting prior year-end balance | $675,000 | $825,000 | $25,472 to $31,132 | $5,660 (20%) |
| First-year distribution factor | 24 | 29 | $31,250 to $25,862 | $5,388 (19%) |
| Annual return after distribution | 4.0% | 6.0% | $28,302 to $28,302 | none |
| Projection years | 7.0 years | 13.0 years | $28,302 to $28,302 | none |
| Estimated tax rate | 18.0% | 22.0% | $28,302 to $28,302 | none |
Two variables at once
First-year RMD by starting prior year-end balance and first-year distribution factor
| Starting prior year-end balance \ First-year distribution factor | 21 | 27 | 32 |
|---|---|---|---|
| $600,000 | $28,571 | $22,222 | $18,750 |
| $675,000 | $32,143 | $25,000 | $21,094 |
| $750,000 | $35,714 | $27,778 | $23,438 |
| $825,000 | $39,286 | $30,556 | $25,781 |
| $900,000 | $42,857 | $33,333 | $28,125 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Starting prior year-end balance | $750,000 |
| First-year distribution factor | 26.5 |
| Annual return after distribution | 5.0% |
| Projection years | 10.0 years |
| Estimated tax rate | 20.0% |
| First-year RMD | $28,302 |
| Cumulative projected RMDs | $355,978 |
| Projected ending balance | $760,663 |
Complete evidence
Full projection schedule
Show all 10 rows
| Period | Opening balance | Contribution | Growth | Ending balance |
|---|---|---|---|---|
| Year 1 | $750,000 | -$28,302 | $36,085 | $757,783 |
| Year 2 | $757,783 | -$29,717 | $36,403 | $764,469 |
| Year 3 | $764,469 | -$31,203 | $36,663 | $769,930 |
| Year 4 | $769,930 | -$32,763 | $36,858 | $774,025 |
| Year 5 | $774,025 | -$34,401 | $36,981 | $776,605 |
| Year 6 | $776,605 | -$36,121 | $37,024 | $777,508 |
| Year 7 | $777,508 | -$37,927 | $36,979 | $776,560 |
| Year 8 | $776,560 | -$39,824 | $36,837 | $773,573 |
| Year 9 | $773,573 | -$41,815 | $36,588 | $768,347 |
| Year 10 | $768,347 | -$43,906 | $36,222 | $760,663 |
Where the inputs come from
Starting prior year-end balance and first-year distribution factor are the same as for a single-year RMD, with the factor from the IRS Uniform Lifetime Table. Annual return after distribution is your growth assumption, projection years sets how long to run the model, and the tax rate estimates what you keep. The factor falls by about one each year, so the required percentage rises over time.
Using the first-year RMD in a real decision
Use it to see whether the account will still be large at 85 and how much taxable income you will face each year, and to decide whether conversions now would help.
When the result stops applying
The projection uses a constant return and the standard table, and real RMDs use the balance at each year-end and actual factors, which change if a spouse is the sole beneficiary and much younger. Multiple accounts and inherited accounts follow different rules. Tax law and RMD ages have changed and may change again.
What to compare it with
The single-year RMD calculator gives the first distribution, and the Roth conversion and bracket fill pages reduce future balances. The QCD page reduces taxable RMDs for charitable givers. The IRMAA calculator shows how RMDs raise Medicare premiums. Review the projection every few years, since tax law and the RMD starting age have changed more than once.
People also ask
Frequently asked questions
Why do RMDs rise as a share of the account?
The IRS factor gets smaller with age, so the divisor shrinks and the required percentage increases each year.
Do RMDs shrink the account?
Not necessarily. If returns exceed the withdrawal percentage, the balance can even grow, as the example shows over ten years.
Can I plan to reduce future RMDs?
Yes. Converting pre-tax money to Roth, giving through QCDs and using the money earlier can shrink the balance that RMDs are based on.